Economics and strategy

Business strategy and economics

Strategy is a set of bets on a few uncertain numbers: how large the market is, how customers respond to price, what a new line will cost, how competitors will react. We estimate those numbers carefully, show how much each decision depends on them, and turn the result into a plan.

A grain elevator on the Saskatchewan prairie at dusk

Questions this answers

  • Which markets, segments or products should we grow into next?
  • Is this investment worth making under realistic and pessimistic assumptions?
  • How will demand respond to a change in price?
  • Which performance measures actually track what we are trying to achieve?

Methods

Market sizing and segmentation, competitive and industry analysis, demand estimation and price elasticity, time-series and machine-learning forecasting, cost and productivity analysis, discounted cash-flow and real-options analysis with scenario testing, and KPI design.